DSL Embedded :: DNS

I am using DSL-embedded.
I can hit web pages by name. but if I nslookup, ping, or remote vnc by name it doesnt work..

if I type nslookup server.domain xx.ip.address.of.dns
then it sometimes gives me the address..

any ideas..

worked fine after turning on ip_forward

in /opt/bootlocal.sh I added the following line

echo 1 > /proc/sys/net/ipv4/ip_forward

original here.